KHFC Issues KRW 348.6 Billion in 1st MBS This Year

 On January 21, KHFC issued KRW 348.6 billion in this year's first MBS. In this issuance, the mortgage claims of bogeumjari loans extended by 18 financial institutions were used as underlying assets.

 MBS issued in January have eight maturity dates, from one year to 20 years. MBS with a maturity of five years or more provided a call option as a safeguard against early repayment of the underlying bogeumjari loans.

 The interest rates for MBS are as follows, according to date of maturity: one year (5.02%), three (5.06%), five (5.14%), 10 (5.18%), 15 (5.23%), and 20 years (5.27%). The weighted average interest rate is 5.17%.

 With the most recent 22nd issuance, the cumulative value of MBS issuances by KHFC since its founding is KRW 8.9780 trillion, including KRW 3.016 trillion from seven issuances in 2004, KRW 3.861 trillion from nine issuances in 2005, KRW 1.7524 trillion from five issuances in 2006 and KRW 348.6 billion from one issuance in 2007.

  Through the issuance of MBS, KHFC continues to strive for the growth and development of the long-term bond market in Korea.